Maldives records 2% decline in December tourist arrivals

Maldives experienced a 2% decline in tourist arrivals during the peak season this December compared to the same period last year, according to data from the Ministry of Tourism.

From December 1 to 11, the number of tourists decreased from 63,523 in 2023 to 62,249 in 2024. Despite this decline, the total number of tourists arriving in the Maldives this year has increased compared to 2023.

As of December 11, 2024, the Maldives had recorded 1.89 million tourist arrivals, an 8.7% increase compared to the 1.87 million arrivals recorded in 2023.

The drop in December arrivals coincides with the implementation of increased tourism-related taxes. Starting December 1, new rates for the departure tax and airport development fee came into effect:

• Foreign economy class passengers are charged $50.
• Business class passengers are charged $120.
• First-class passengers are charged $240.
• Passengers on private jets are charged $480.

Additional tax increases are scheduled for the coming months:

• Green tax: From January, the tax for guesthouses with fewer than 50 rooms will increase from $3 to $6. For resorts, city hotels, and properties with more than 50 rooms, the tax will increase from $6 to $12.
• Tourism Goods and Services Tax (TGST): Starting in July, the TGST will rise from 16% to 17%.

The government anticipates generating an additional MVR 3 billion in revenue through these tax adjustments. However, industry experts have raised concerns that the higher taxes may make the Maldives a more expensive destination, potentially affecting future tourist arrivals.